One thing that’s clearly been energizing the convenience sector is the growth and evolution of the energy drink category, as early pioneers like Red Bull, Rockstar, and Monster have been joined by a cohort that features C4, Celsius, Ghost, Alani Nu and, yes, Bang (now owned by Monster) as well as others that have roots in the fitness channel.

Those brands together accounted for nearly $3 billion in sales, according to NielsenIQ all-channel data supplied by Goldman Sachs analyst Bonnie Herzog, and they are leading to changes in shelf sets across the convenience store channel.

To explore the ways that trend – and other areas where fitness and supplement trends and CPG collide – surfaced at NACS, we spoke with Joshua Schall, a BevNET contributing editor who has long covered that intersection.

A few takeaways from this in-depth interview:

• The growth of the “energy plus” subcategory is creating a bit of a caffeine divide between the high-test energy plus brands – which can go up to around 200 mg of caffeine or more per 12 oz. can vs old line brands, which tend to keep things at around 100-120 for the same size.
• The category is dividing functionally into several subcategories, including nootropic, protein infused, and even appetite suppression
• Hydration is also becoming part of the equation, with brands ramping up their electrolyte formulas and also adding caffeine to pre-workout formulas.

You can see the entire interview on BevNET.com. And check out Schall’s YouTube page as well for details of his adventures in the functional CPG world.

Watch the full interview on BevNET

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🆙 NielsenIQ: Beverage Sales & Pricing Up, Volumes Improve (ALL USERS)

🥤 Non-alcoholic beverage sales “remained healthy and accelerated” as volume declines improved and pricing ticked up slightly during the two-week period ending October 7, according to Goldman Sachs Equity Research’s latest analysis of NielsenIQ data.

​​🔍 Across all categories, dollar sales were up 4.5% in the two-week period, compared with 3.5% for four-weeks and 10.1% for 52-weeks. Volume declines improved moderately, up -2.4% during the two-weeks versus a -2.8% in the four-week. Overall, pricing growth “accelerated slightly sequentially,” up 6.9% (6.4% in the four-week period). 

⚡ In the energy category, Monster (including data from recently acquired Bang Energy) improved its sales declines to -3.8% (-5% in four-weeks) while volume declines eased to -6.2% during the period (from -7.3%/four-week). Emerging brands Celsius (+178.4% sales growth and +149% volume), C4 maker Nutrabolt (+68.9% sales and +58.7% volume), Alani-Nu (+56.8% sales and +63.5% volume) and Ghost (+76.7% sales and 72.9% volume) continued double-digit gains in the category.

Read the full story on BevNET

Goldman also shared info on spirits-based RTDs and FMBs. They are keeping up dollar growth, as volume performance improved across total BevAlc except cider and wine, according to Goldman’s analysis of NielsenIQ data. The data offers a glimpse of fast moving categories in the cold box.

🍷 While wine might be down, sales for wine-based RTDs like BuzzBallz and BeatBox were up 25.8% for the two-week period, compared to 24.8% in the four-weeks and 19.1% in the 12-weeks. 

🫖 Category sales growth remained strong for FMBs too, up 16.4% for two-weeks in line with 16% in the four-weeks and 18.1% for the 12-weeks. Hard Tea and soda are leading that category with Twisted Tea and Hard Mtn Dew on top.

🥃 Spirit-based RTDs are up 37.4% in sales over the two-week period ending October 7, versus 34.8% for the four-weeks and 39.8% for the 12-weeks.

😎 High Noon and Cutwater continue their dominance of those spirit-based RTD sales, making up about 37% of dollar share. 

But the momentum of spirits-based RTDs keeps bringing in new competitors: already this week we've seen new canned concoctions announced from Coca-Cola and Diageo.

Read the full story on BevNET

For the first time, Essentia has partnered with the NBA, becoming the official alkaline water of the Brooklyn Nets. The bottled water company will join other beverage brands Barcode, Snapple and Red Bull among others as sponsors of the professional basketball team.

⛹️ The partnership will put the ionized alkaline water at concession stands as well as will be offered to players and team staff in the locker rooms and at the training facility.

🥳 Essentia will also begin activations in collaboration with the Nets this month providing fan opportunities to win prizes through surprise merch drops and sweepstakes.

🏀 Despite it being its first team sponsorship with the NBA, Essentia is no stranger to professional sports partnerships with deals in place with Miami Heat’s Jimmy Butler, professional boxer Jermell Charlo and NFL players Patrick Mahomes, Rondale Moore and Justin Fields.

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Starting Monday, Recess will now be a bakeable treat. The relaxation beverage brand has partnered with DTC company The Caker to develop a limited-edition Strawberry Rose Cake kit that will be available on the drink maker’s website for $39.99 each..

✔ ️ The kit will include the birthday cake ingredients including icing mix, a rosewater vile, freeze-dried strawberries and a 4-pack of Strawberry Rose Mood to enjoy with the dessert.

🎂 Founded in 2010 by cookbook writer and baker Jordan Rondel, Caker develops boutique-style cake mix kits and baking recipe books. The brand has partnered with various CPG food and beverage companies including Fly By Jing, Intelligentsia Coffee, Graza and Glenmorangie among others.

🛒 Recess has found a sweet spot in its non-CBD Mood line (which includes the aforementioned Strawberry Rose flavor) bringing the brand’s drinks and powder sticks to more than 5,000 new retail doors.

Behaviors learned during pandemic lockdown may have become entrenched among U.S. households (hint: it’s not macrame). 

Drinks data firm the IWSR found that while bars and restaurants have bounced back, most markets have yet to see their on-premise share of alcohol consumption reach pre-pandemic levels. 

Reasons differ between Asia vs North America and Europe, where people are staying in to save a few bucks. In the U.S. 59% of consumers said they were going out less – and IWSR believes that negative views of the on-premise here have been exacerbated by consumers becoming more aware of the increased costs associated with going out for a drink after staying in during lockdowns. Many bars and restaurants are also being squeezed by rising costs and supply chain pressures, leading them to raise prices. 

That shift also has cultural implications on how people are socializing: In Europe and North America, about 60% of consumers do not view alcohol as an important part of their social lives. Couple that with Gen Z feeling a bigger financial strain and more into moderation than other generations, the bar may not be the "third place" it used to be.

The new report lines up with spirits analysts' predictions that the next 12 months are likely to remain a tough for spirits on-premise.

One moonshine maker is shaking up the historic spirit with a sweet twist. Midnight Moon is scaling for unprecedented demand after releasing Moonshakes, a boozy shake in flavors like apple pie, made with moonshine distilled in North Carolina. 

😋 The flavored whiskey comeback has spilled over to other beverages too apparently. Moonshakes are tapping into the demand for indulgent, sweet flavors that spiked post-pandemic. 

🛒 The brand launched with colorful floor cases and mini-mason jars for retail counter displays, which are luring in customers. 

With a $20 price point, one retailer said the new product hit the sweet spot to convince customers to try something new. 

🌙 The cream liqueur category has long been dominated by major brands like Baileys Irish Cream and Kahlua, but recent entrants like Moonshakes have made a splash— fast growing-coffee liqueur Mr. Black was acquired by Diageo last year and LS Cream, a liqueur inspired by Haitian drink known as cremas, has found inroads into major retailers. 

Read the full story on BevNET.

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